e same sales, but it's profitable on average it's able to sell mattresses at a higher price >> jay ritter, thanks for your time today appreciate it. >> thank you. >> and thanks for watching "power lunch," everyone. >> "closing bell" will start in just a few seconds we'll see you back here tomorrow welcome to the "closing bell," everyone. i'm wilfred frost at the new york stock exchange. exxon is up and that's helping to lead the dow to session highs as we speak of about 450 points with 59 minutes left of trade. >> morgan brennan. building on yesterday's strong gains, you just heard wilf mention the major archlgs are firmly back in positive territory for the year energy leading the sectors today, the first time in six sessions and the nasdaq is the laggard

with tesla seeing a sharp pullback following a massive year-to-date run sara eisen is with us at nike headquarters in new york for a big interview. >> good afternoon, morgan. i am here because nike has just unveiled its new olympic uniforms it's all about sustainability. they're made out of crushed up shoe parts and recycled polyester. you can see some of them behind me i'll show you a lot more and i'll speak with the brand new ceo. it's a cnbc exclusive and his first time talking for this big innovation event nike is hosting here in new york that's coming up later on "closing bell." >> i notice mark gilbert, your producers have been tweeting out some of the other things they've released, including the sweat pants they would wear if team usa wins any medals. >> right so there's uniforms for on the field or on the courts and then ones for the medal stands as

well and we will try to bring you some pictures so that you can go beyond twitter and see them as well but the theme here is sustainability and they really are taking a leap forward when it comes to using recycled goods for both the medal stands and on the field for the first time >> thank you very much for that. didn't pick up on my if part of that i'm sure team usa will win plenty of medals joining us for the first half of the joe, josh brown. good to see you. >> i was just going to mention, regardless of whether team usa wins or not, i will also be wearing a variety of sweatpants throughout that week. >> will you win any medals yourself >> on your couch watching games? >> yes >> we've had a big bounceback from the coronavirus related declines does it concern you how quickly we've gotten back? >> i've got to buy back all the stuff i panic sold last week it's a little bit of appear

inconvenience for me personally. but just broadly speaking, you have this xlk and xly combination with new highs we're accustomed to that that's discretionary, amazon and your typical tech name, software and chips. now you have this other interesting thing happen iemg for emerging markets, up 4% in three days. the russell, these are small caps, last week they looked like death. right now up 3% in like two days so you've got a big bounceback in the hardest hit areas xpi up almost 8% since friday. and i'm just looking at materials up 5% and the regional banks up 5%. these are big bounces in the hardest hit areas. the energy thing you mentioned at the top there was a note today about just this massive divergence, tech versus energy

it's at a momentum spread it hasn't seen in 30 years. going back to the origin of the data in 1990 so you have energy up almost 4% on the day today since 2011 i went back and looked the spy index etf is up 213% the energy etf is up 3%. so there was just such a massive gap. so if you're looking for those types of mean reversion trades, that's like the biggest one maybe i've ever seen. >> we've got a lot more from josh over the next hour. >> not going anywhere. >> no. a lot more nuggets meantime, turning out to the latest on the coronavirus, as the cases approach 25,000. nearly 500 reported deaths, mostly in china. the cdc is holding a news conference regarding an evacuation flight carrying american citizens from wuhan just outside of travis air force base we're going to turn to kate rooney there on the ground with

the latest >> reporter: hi, morgan. a press conference just getting under way. we're expecting updates from the cdc on several planes landing at the travis air force base. those are filled with u.s. passengers fleeing the epicenter of the coronavirus in wuhan. two flights carrying 350 people landed here. the military base overnight, one of those has gone to the marine corps air station in san diego and two more are scheduled to come in. they're going to refuel and head on to san antonio. officials say e evacuees were screened for symptoms. about 200 of the passengers are expected to stay at an inn within the air force grounds and travelers will be quarantined and monitored for two weeks. back to you guys. >> thanks so much for that i'm sure we'll behearing from you later in the show let's tal about the medical community's latest to con train and treat

the virus. >> the headlines are coming quickly and the world health organization moving today to put them into context. no drugs have yet been shown to work against the novel coronavirus. what is happening is testing existing drugs approved or developed for other viral infections to see if they may work for this virus. that's being done with johnson & johnson's hiv medicines and with an experimental drug they say there are two clinical trials planned to be conducted in wuhan and it's providing enough doses to treat up to 500 participants that will be a few months at least before we get the results, morgan. >> meg, thank you for bringing us the latest. a number of large companies providing more clarity on the impact from the coronavirus. nike saying it expects store closures and slower foot traffic to have a material impact on operations in china. tesla says it will delay delivery of some chinese made cars that stock taking a big hit today in part on those coronavirus fears. hong kong's cafe pacific airways

has asked its employees to take three weeks of unpaid leave and said it is stopping all noncritical spending and saying it will take $100 million hit to revenue >> meantime, gm's ceo is addressing coronavirus concerns at the capital markets day. >> our supply chain and engineering teams are working around the clock to develop and execute contingency plans and we are doing everything possible to mitigate the impact of the virus. again, it's a fluid situation as we learn more, we will provide updates. >> comments from disney in the last 24 hours, comments from micro chip, which is a semiconductor stock but now says they see the risks low >> for most companies, hard to

put a number on it and quantify specifically josh, are you concerned about a gdp impact in china that could lower global gdp sufficiently to spook markets? >> it's not great. i think i'm probably more concerned about whether or not this becomes a humanitarian issue, because in my experience with these types of events, assuming they eventually get it under control, most of the spending that gets put off happens later anyway so it's not like this is your last quarter as an investor. we're going to be here for a while. so i don't think you lose anything you just have things pushed back but i have portions of my portfolio where this is actually benefiting me. one of the themes i repeatedly talk about on the show, my big theme for 2020 is virtualization it turns out a lot of things that happen in person don't need to zoom media, a stock i actually talked about here as a last chance trade, it's up like 20% in a couple of days. i don't know if it will keep that gain, but zoom is an example of companies saying why are we sending 20 people to hong kong over the next six months,

let's make those zooms let's sign up. virtual meetings, it seems so obvious and intuitive. and yet it works teledoc, how many people want to go to an emergency room or a clinic talk to a doctor virtually these are two names i own. later in the show i'm going to talk about a third name that i think is playing into the virtualization trend and i'm a professional, i have to drop the teasers. >> last chance trade still to come and also tonight you don't want to miss a cnbc special report, outbreak coronavirus we'll tell you everything we need to know as the deadly virus spreads. that's 7:00 p.m. eastern time right here on cnbc meanwhile, here's a check on shares of merck. the company saying it's planning to spin off its women's health division into a new publicly traded company let's go to mike santoli who is taking a closer look at spinoffs. >> wilf, the merck pullback

seems like it might be somewhat related more to earnings, which on the top line were disappointing. but there was an announcement of the spinoff of the women's health, and it's something that big diversified companies have tried to do over the years is hiev off the lesser growing businesses here's the performance of an etf that tracks an index of spun-off companies. it almost used to always be an automatic that they made you money. hedge funds owned these companies. they were depressed at the outset and they gained favor as they got coverage. they've not performed well relative to ipos and the s&p in the last five years. it's not clear, but one theory is that private equity is so active right now and looking for divisions of big companies to buy. it's one of their favorite things to do if the company does not sell the division but decides to go with

a tax-free spinoff, it could mean there wasn't a great price to be had in private equity and you're sort of getting a residual slower business that doesn't excite investors unclear on merck, and also interactive completing the match spinoff soon, so i just think for background purposes people used to think it was always a great opportunity and it might not be quite as easy a gain as it used to be. >> the ipo performance over the last couple of years essentially matching the s&p 500 perhaps a little better than some might have expected. >> you had the obvious large disappointments, but even the disappointments did not go down 60% or anything like that from when they went into an ipo index. keep that in mind. they don't always go in at the ipo price. so at some point the preponderance of the deals have done pretty well. >> thanks, as always coming up next, the ceo of citizens financial group will tell us how low interest rates are impacting the banking industry. >> and later, our closer today

is new nike ceo john donamoe, he will discuss the outlook for the company. here's a check on our data tracker. the january gdp employment survey coming in better than expected, posting its best monthly gain in nearly five years. plus the non-manufacturing index hitting the highest level since last august. stay with us make fitness routine with pure protein. high protein

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welcome back regional banks up almost 2% today, on pace for their best day since december 12th. joining us, the chairman and ceo of citizens financial group. good afternoon to you. thanks for joining us. >> my pleasure. >> i want to touch on the broad interest rate environment to begin with, because the second half of last year it started to look like you guys were having some reprieve in terms of the height and shape of the yield curve. how do you see the outlook for the year ahead >> i think coming into the year things were shaping up very nicely we had the fed on pause and typically the curve starts to steepen, usually about 50 bases

points once the fed pauses and i think sentiment was positive around easing of the trade tensions what happened was the coronavirus actually moved the market to risk mode and the curve just flattened right back out and expected that the fed might be cutting rates again it looks like that's starting to reverse and that's one of the reasons you'reseeing the stock up today. >> what are you seeing in terms of volumes of loans and credit quality as well? does it offset the slight weakness >> yeah, we had 4% loan growth last year and we expect similar this year. we're seeing it on the commercial side and the consumer side i think on commercial we're being selective about where we play we're still moving around the country and opening some new offices and trying to gain market share and then on the consumer side we've been a player in education refinance loans and then some of the merchant point of sale financing like the arrangement

we have with apple and a new one with microsoft xbox. so there's some nice opportunities for us and we're trying to stay out of the main areas and look for little niches where we can find growth. >> do you worry about auto loans? because a lot of the people that had been sub-prime people 12 years ago, they seem to be getting a second life with continually pointing out the rollover in credit issues with respect to leases and purchases of automobiles is that something that's on your radar as a potential risk? >> that's not really a risk for us we stay at the super prime and high prime borrower area so that segment of the market continues to be favorable. >> does it trouble you as a potential indicator for cracks in the economy or not really >> not really. every lending portfolio that we have we don't see any migration into delinquency buckets everything appears that as people say, the consumer is in really good shape. wages going up, jobs are plentiful, spending money. so don't see any real issues

right now in any of our lending portfolios. >> in what has now been a prolonged interest rate environment, one of the things you've repeatedly talked about is boosting fee incomes and what that looks like. i know that's included in a number of acquisitions for the company over the last couple of years. how are you thinking about it now, especially given the fact that more broadly we are seeing all of the deal making >> no, i think we've been investing in the fee-based businesses organically and then with these acquisitions. so we want to be able to do mor for our customers and serve their needs more fully i think we saw really good growth last year we hit 9% before the acquisitions, with acquisitions we had about 18% fee growth. we're not fully penetrated to the opportunity. if we can see acquisitions that can allow us to broaden our capabilities even further, we'll continue to be looking for that

in 2020. >> bruce, there's been a lot of focus on how much the big players are spending on tech and whether or not smaller banks can keep up with that. last week i caught up with david solomon of goldman sachs, who of course are one of those guys spending a lot on building out a tech-focused consumer bank and here he is talking about the types of banks he thinks they're going to challenge with that >> the big leading u.s. banks, the top four, have approximately 50% share of the u.s. consumer business but then there are 4,000 banks that share in the other 50%. and i think goldman sachs is very well positioned given our scale, balance sheet, risk management capabilities, ability to make significant technology investment to compete for a share of that business as disruption and digitization goes on in consumer banking. >> does hearing that worry you, bruce, whether it's from a goldman sachs, or one of the big four who are spending so much on tech themselves? >> their business models are broad and they have a lot of things to support.

so you have to look in the spaces that we play, do we have the scale to compete effectively. we've done that for years. we leveraged under platforms we really focused on the customer experience and differentiating with the customer so i would say we still have sufficient scale and good leadership, good prioritization and ability i think to compete effectively with technology against any one of these players. >> bruce, thanks for joining us. >> nice share price move today. >> up next, it's the word on the street, featuring untech giant tlakd benefit from the efforts to limit the spread of coronavirus in china. >> plus qualcomm headlining another big day for earnings we'll break down all of the numbers later here on the "closing bell. don't go anywhere. no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy

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you've got 37 minutes left to go. the dow is up 494 points we're at session highs if you take a look right there at the dow, all but four components are in the green. ibm is actually among the biggest leaders right now. it's up more than 5%, hitting levels not seen since april of 2018 josh, want to get your take on this. >> i bought some when they announced the new ceo. i don't really know anything about him but i said he can't be worse than the way the company had been run and i think that's clear to everyone and i looked at it like, look, here's almost a 5% dividend yield. it will probably take a year or

two to get anyone excited about anything new they do so the rational was not that this would happen. now you have a stock that's up almost 15% since january 31st. i have not seen ibm move -- i mean, it's like a mini version of tesla so i have no opinion on today's activity i just think it's noteworthy and this is a big movie. >> it's all since they announced the departure. >> eight straight quarters of declining revenue. i'm sure she's a wonderful person but this has been one of the most disastrous large cap tech stories for a very long time the entire tech sector has gone from $100 billion market caps to trillion dollar market caps and i don't understand what they're doing. so i think something had to change and it's not to say this guy is going to be a huge improvement it's just something different and then you hope for the best i'm in here just to see what happens. >> i think we have a new ceo

that was heading the cloud division and a new president that was heading red hat as well >> so that's -- right, so like whitehurst might go because people thought he was the parent. >> up 14% in the last week. >> time to get to word on the street we're going to pretty much stick with the tech theme. morgan stanley says china's mit gragz actions during the coronavirus outbreak could be potential for apple's app store growth in china t. firm citing millions of chinese consumers spending more time at home and seeking alternative means of entertainment. meantime, bank of america says netflix has strong competitive advantage. the firm saying positive outweighs the negatives. and the release of disney plus original premieres scheduled for q4 of 2020. >> downgrading tesla to hold from buy, citing a risk/reward

andcoronavirus as a clear head wind and bar clays saying it doesn't want to sound like a boomer to investors. but the reaction to tesla reminds it of the nasdaq in 1999 despite the bearish outlook they've raised from 300 to 200, opening up the possibility of raising capital cheaply. a big slide in tesla today 16%, 17%, following a rise in previous days. >> with shares at $738 to put the price in perspective. >> josh, what do you think of the netflix/disney note? i have to say i read it thinking this is someone trying to find the negatives in some very strong over-the-top subscriber numbers for disney plus to sort of maintain a positive stance on netflix. >> that could be i do think that people have a favorite when they've been covered in the space for a long

time full disclosure, i have no netflix, i own disney. but they have almost 30 million over-the-top subscribers in like two and a half months. they're almost half of what netflix has domestically and they could be 35 h 45 million by the end of the year without a lot more effort. we know there's some new shows coming out in the fall with the existing catalog of entertainment, it will be more effortless for them than it was for netflix to spend the last ten years making new content so i don't see how you could be negative on disney they're crushing it. i love everything going on with the company. i know there's a nasty candle in the chart today. it's a little bit gnarly i think that disney ends the year closer to $200 than $130. >> disney at $141, $142.

up next, bitcoin tom lee will tell us where he thinks tesla's rally is reminiscent of the cryptocurrency skooring. >> and later john donahoe explains how the coronavirus is affecting the company. >> here's a check on bonds where yields are higher across the board today.

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welcome back 29 minutes, and we are just off session highs. up almost 500 points the key things driving the action, stocks soaring for a third straight session, sitting near highs as we head into the close. energy climbing more than 3% and the nasdaq is the laggard with tesla seeing a sharp pullback following a massive year-to-date run higher it's time for an update with sue herera. >> hello, everyone here's what's happening at this

hour democratic presidential candidate joe biden speaking to supporters in southeastern new hampshire, working to gain support ahead of next week's primary. he commented on his disappointing showing in iowa. >> i am not going to sugar coat it we took a gut punch in iowa. the whole process took a gut punch. but look, this isn't the first time in my life i've been knocked out. i'm counting on new hampshire. we're going to come back. >> iranian president rouhani says iran wants fair negotiations and the u.s. can't make iran surrender in unfair talks. he was speaking during a visit to the book of the year ceremony in tehran. and the super bowl chiefs celebrated with a parade through the city to celebrate their first super bowl championship in 50 years city officials say as many as 1 million people were expected along the parade route and at union station. and we have a quick correction in the last hour we said senator romney was voting against the

second article of impeachment, it is obstruction of congress. morgan, i'll send it back downtown to you. >> thank you in the meantime let's send it over to mike santoli for the market dashboard >> you guys were talking about the divergences within the market, tech versus energy let's take a look at the last six months at what kind of market we have had coming into this rally today various sectors, the qqq, first of all, we'll look at this one this is the most extreme example of what's not working versus what has been working. the xop etf, this is a ratio as it goes down, it means tesla is doing a lot better. crazy vertical bounce right here as you have tesla coming in hard, and finally a bounce in energy this really shows you more than anything what josh was saying in terms of how profoundly oversold energy is versus anything virtual, of course tesla even

more extreme than just the tech secret in general. it shows you how much room there is to makeup and still be in a downtrend. you don't have to think we're in an emergency revival to think we can have reversion take a look at the questions of qqq versus s&p 500 against energy andagainst banks. so what you see here is obviously bearing missing a beat was the nasdaq 100 etf banks are bouncing, but from lower levels so yes, it has been mostly large cap driven moves just today, you can't really see it on the chart, you have seen other stuff start to pick up so maybe we have a situation where some rotational action can help support things as opposed to having things continue to widen. >> mike santoli, thank you before today's sell-off tesla shares had run up 112% this year, with some comparing it to bitcoin's rally in 2017 when it

rocketed 168% and then fell 18% in two weeks joining us for more is co-founder and managing partner, tom lee. before we get into comparisons to some of the other charts we've seen over the years, first i want to get your take on the massive move we have seen in tess lachlt there tesla. there's been a lot of talk about investors piling into the name one of the points you make it could be russell 1000 growth manager. >> tesla year-to-date is the biggest contributor to russell growth performance and that's the biggest bench mark out there, much bigger than the s&p 500. so if managers underweighted tesla because some of the problems around the conference calls and tweeting and they were flat or zero exposure this year, they need to suddenly put at least a 1% weight because that's

tesla's weight in the index. that would be $14 billion of buying power, which is greater than the short interest today. so i think a lot of tesla's move is fomo from russell managers, because they tell their clients they don't have any exposure they have to have at least a bench mark weight and the short covering and the retail and i think that's explaining a lot of the raise. >> do you think it was institutionals getting in on the russell 1000 bench mark? >> i think both the russell, fomo, retail and short covers are price indiscriminate but the dollar amounts of russell 1000 is just overwhelming what short covering took place. >> that might be the biggest bench mark for people but does it also suggest that had tesla been in the s&p 500 this would have gone further and faster >> absolutely. i think an example is like last year, s&p 500 value had apple as

its biggest contributor performance and so that contributed to apple fomo. if you're a value manager and you thought apple was expensive and it's ripping, you have to do fomo until year end. >> there's this economic concept where there are certain items that defy supply and demand and the higher they go in price, the more demand comes out for them and like in this example if you're somebody that's trailing the bench mark already, and then you see a stock up 30%, 40%, you have no exposure, you almost have to desire it more as ridiculous as that sounds. >> and you have to remember tesla, amazon and microsoft in the russell 1000 is 60% return. >> we've seen that before with baba where it was not an s&p but

it was big enough to be a large company and it had a 50% run and it did a full double because every manager said every point made in baba is pure alpha it's not in the s&p. we've seen these kinds of mechanical things before. >> absolutely. >> it begs the question does this feel like what we saw in bitcoin several years ago? >> i mean, the price charts look similar and i think parabolic moves ultimately look similar. but in 2017 once bitcoin made its big move, you saw huge regulatory backlash, so access to crypto see va and master card cut buying bitcoin with credit cards. u.s. banks shut access to crypto exchanges and u.s. regulators cut down and that cone of uncertainty -- contributed unless reg yu laters shut down access to tesla it may hold up better.

>> if this run-up has been the fomo of the three investor groups you just mentioned, as soon as you get a big pullback day does that burst the bubble because it evaporates and turns to the opposite? >> i think tesla is an important story at this time because it's clear the automotive industry is going full electric. they think system design is easier around an electric platform tesla has got a huge lead and, as josh is saying, there aren't any other proxy plays. so for someone who wants exposure to alternative energy or l it's really tesla. so i think there probably is better staying power. >> great to see you as always. we've got just 20 minutes or so until the close. we are on record close watch for the s&p 500 and the nasdaq nasdaq definitely should close in that territory. up next we've got your last chance trade josh is looking at one stock that's down 10% over the past

year. >> plus the stock is down exclusively with the ceo at e th nike headquarters. he'll lay out their plans for innovation coming up later on "closing bell. >> announcer: cnbc news update is sponsored by comcast business take your business beyond at comcastbusiness.com. through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. ♪ ♪ ♪

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17 minutes left of the session. here's a check of the closing board. the nasdaq is the under-performer today because of tesla, but it's still set for a record close s&p also on record close watch up 1.1%. tesla, massive slide today after of course a rise in previous sessions >> josh, it's time for your last chance trade you teased it at the top of the hour >> i'm super excited to talk about this one this is slack. this is part of the virtualization idea that i've been talking about so much can be done on slack that historically has been done on email, but also in person so i kind of throw it into the basket yesterday a massive upgrade, the stock went up about 11%.

if you look at a chart, i didn't draw the support line, but you can clearly see this stock, every time it gets to $20 the buyers come in as if on cue. you can say that's pretty legitimate support that's what i would trade against. i would say it's 15% potential downside the market will let me know i'm wrong if the buyers fail to show up at $20 as they have reliably now four times in the mean while, look at the upgrade, a $30 price target. 30% revenue growth as far as the eye can see. the threat from microsoft teams is way overstated. so i'm in the name not as a trader but as an investor. i've added to it here in the 20s. i'm sticking with it i'm not coming out of any of the shares that i bought and i do feel that slack is going to be a critical part of the enterprise for a long time to come. we use it at our firm every day. >> steve butterfield, the ceo was here on "closing bell" last week. >> there's just a lot going on

here. >> do check out the interview on cnbc.com up next we'll bring you uninterrupted coverage of the final minutes of trade when we take you inside the market zone. you can always watch us or listen to us live on the go on the cnbc app we're back in a couple of minutes. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

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you should be mad they gave this guy a promotion. even those who don't have a voice. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. >> announcer: the market zone is sponsored by e-trade get $100 on us when you deposit $5,000 12 minutes left in the trading day. we are near session highs for stocks we're on record close. watch for both the s&p and nasdaq and we are now in the closing bell market zone,

commercial-free coverage of all the action. >> the markets commentator mike santoli is here to break down the crucial moments of the trading day and we've got josh brown as well. let's kick things off with nike. sara is at the hq gearing up for her interview with nike's ceo, john donohoe what can you tell us >> nike is down today on concerns of the coronavirus. the company came out last night updating investors saying that the coronavirus would have a material impact on this quarter's results, though in the short-term nike is saying that half of its stores in china remain closed. so clearly china has been a huge growth spot for nike analysts say it's about 16% of total revenues, more than double that of actual profits and it has been growing double digits adidas warned that less than 5% of its stores in china are

closed as well the analyst's notes say that both brands are very strong still in china and that's the important thing in terms of those sales being recovered. it's certainly something we're going to ask john donohoe about and that is the strength of the business in china, whether they can keep up the double digit sales growth and since you asked, we brought in to the studio team usa champion here's the medal stand look. it's 100% recycled polyester and nylon. that's what they wear on the stands and wilfred, we did some number crunching because you brought up if team usa wins guess which team has the most medals of all-time >> it's why i brought it up. obviously it's team usa. >> obviously it's team usa we looked around, we couldn't find any of the british medal stand outfits.

couldn't even find them on the list of winners. >> we start with broomsticks >> what's it called, the sweep out? it's coming. we're not bad at that. we're good at rowing and cycling. but we won't win the most medals awesome stuff. we look forward to the interview with the new ceo of nike >> shares of gm and ford are moving after reporting earnings. fill phil lebeau has more. >> let's start with general motors this company beat in terms of estimates for the fourth quarter earning a nickel per share the street was expecting them to earn just one penny per share. when you take a look at ford, remember the uaw strike was in there the first two weeks of october. it cost the company $3.6 billion compare ford versus general motors

ford also reported earnings. they didility yesterday after the close of business and in ford's earnings this was not a good report at all it missed in the fourth quarter due to poor execution. they've had a number of problems with the explorer launch it lost $1.7 billion in the fourth quarter and guidance below estimates. when you take a look at shares of ford, as one point it was down more than 9% as analysts are saying where is the growth going to come from from ford guys, back to you. >> phil lebeau, thank you. as we speak, we've got gm vehicles parked outside of the new york stock exchange. they had their meetings here as well and we've been very focused on the electric vehicle movement and how that's been powering tesla. i think gm would like to be a part of that conversation. >> they're trying to be. i think the street was okay with what they had to say stocks bouncing. in fact, all of the auto related stocks except for ford bouncing today.

we have kind of an industrial value lift in the market today but you have a situation where you have gm and ford traded at six times earnings and tesla sex tim -- six times revenues >> the stock has been going down for decades literally. >> what do they do right they just came out last night and said they're having problems with the flag ship, the f-150. they botched the rollout of the new explorers. the market cap shrinks every month. literally what are you doing so they don't deserve to be part of this conversation. >> down today is ford. we've got 6.5 minutes left of the session. shares of biogen soaring >> they won a major patent

decision for the multiple sclerosis drug this was a highly anticipated decision as the drug is the biggest bringing in $4.4 billion in 2019 revenue. it doesn't take all patent challenges off the table but analysts say this decision likely raises the chances biogen will win there, too. investor attention is shifting to the news on the alzheimer's front where they're expected to file any day for fda approval of their drug and that would be a big one to watch back over to you. >> thank you mike, want to get your thoughts given the fact that we have seen a bounce in some of the biotech names. >> the group has gotten a bit of a tail wind. what i love is the two-year chart, this is the fourth vertical move up or down on one of these a nounments or something like that and it's gone exactly nowhere it was at 333 two years ago, it's at $333 right now and it just sort of shows you that it didn't give you a chance

to figure out what was going on. so this one is kind of a quick silver thing to grab. >> more broadly, health care, mike, is getting a nice bounce today. does that speak a little bit towards the political impact on this week's share price? >> ithink when it comes to the health care providers, yeah, united health care is leading the dow today. it's up 8% this week or the past couple of days it seems like there's a sense out there, less political risk but also the medical device stocks are up today. we have very good long-term dynamics and they had pulled back with the market pullback. >> after the bell we'll get news from qualcomm. >> many analysts are optimistic on qualcomm's ability to build out on 5g. they're expecting revenue and margins going forward, given share gains in 5g, higher average selling prices and increased royalty revenue. the question is whether the coronavirus has impacted the

supply chain and inventory in china. take a look at the chart you'll see it's up about 31% over the past six months i'll send it back to you >> thank you i want to get your thoughts, josh, on qualcomm or the chipmakers more broadly. >> i feel like qualcomm is not necessarily representative of other chipmakers a lot of it over the last few years has been about patent stuff and litigation and i feel like now it's more about demand for the end products i'm not in the name, i don't have any position. my sole individual chip stock right now is nvidia and i'm kind of on the sidelines with this name i want to have fun, though that's the important thing. >> you can have fun from the sidelines, cheer on the players. i would say qualcomm and broadcom are slower and the rest of the industry is the dynamic

boom box. >> we've got the session that's pulled back a little bit but set for a record close just about on the s&p and quite comfortably for the nasdaq again. >> healthy internally and i would say that it's not just the familiar leaders look at the advances in decline on the new york stock exchange been positive all day but not overwhelming it's not as if you're seeing a shutout. so basically it's 3-1 to the good that's a net positive. look at the equal weighted s&p against the old that's market cap weighted and you will see some outperformance by the equal weighted s&p, basically the average stock doing better than the large mega cap bench mark names. volatility index, i keep pointing out it's declining, despite the fact the market has come back. probably because we've got all these 1% daily moves, so only so much that the implied volatility in the vix can come down

if you're truly bullish, you probably want to see that continue to bleed lower in a hurry, probably below 14, and it would suggest that in fact some calm and some orderliness is going to be getting back into the market. >> we've got 2 minutes left to go until the closing bell. let's send it to rick for a check on bonds. >> we had great data this morning. if you look in particular at what we saw with jobs and adp, best in over four and a half years. we made the high as you see on the chart, the moment that was releas released what's interesting is today ten-year notes finally reached a one-week high levels from before the coronavirus. the ten-year back in positive territory. zooming and steepening finally the dollar index looks to close at the best levels in over two months, and bertha, the nasdaq, the first indices up 6%. >> it's moving higher today notwithstanding tesla's

continuing insane mode if you bought tesla yesterday, you are down 24% from that high yesterday. still the stock is off of the lows of the session and on pace for a 10% gain mean time chips are strong this week, better than 6% already, propelled by strong earnings but it's been the big comeback that we have seen in health care stocks with biogen leading up the bio tech and one medical up four days in a row, now up 71% from its $14 ipo price. over to bob. >> 3329, bertha, that is what we need to get a new closing high we need to close above that. it looks like we're going to do that nice expansion today so i think we're there the united health, all the health insurers up today i think that's a sigh of relief

that maybe bernie sanders isn't the front-runner but all of the stocks on the upside even exxon mobil up today. a new low just a couple of days ago. that's a broad rally there's the closing bell dow jones industrial not quite 500 point move, 480 points s&p closing at an historic high. if you're just joining us, welcome to the "closing bell." i'll wilfred frost. >> and i'm morgan brennan, along with mike santoli. >> let's check in on where the markets closed a record all-time high once again for the s&p 500. the nasdaq also, but the s&p joining the pack for the first time in a couple of weeks, up 1.1% at an interday high the nasdaq up to 0.4% because of tesla's drag on the index. the dow led the charge but not

in record territory itself. >> energy and financials the best performing sectors in the s&p. real estate, the only sector t finish in the red. we are moments away from big earnings as well qualcomm, grubhub, pell paton, zinga all set to report in just a few minutes. we'll bring you the numbers. plus sara will sit down exclusively with nike ceo john donohoe. it's a big interview coming up shortly. >> we've got breaking news first of all the final vote on impeachment set to start any moment now. let's get right to washington with all of the latest >> wilfred, the trial is set to reconvene for the final vote on the articles of impeachment against president trump. any moment now, we just heard from senate majority leader mitch mcconnell speaking on the senate floor and he made a passionate case for acquitting the president. he said this partisan impeachment will end today but certainly both sides worry

that the bitter process over the past several months will damage the institutions of government for years to come. now, when the vote does happen it will be highly orchestrated the senate clerk will read the first article of impeachment and then it will take a roll call of all the senators they'll stand up in their seats to cast their votes guilty or not guilty and then the process will repeat for the second article of impeachment now, we did learn in just the past few minutes the democrats have been able to hold the line. all of the democratic senators will vote to convict president trump and that includes senator joe manchin of west virginia who had been seen as a potential swing voter. republicans have one defection as far as we know on their side and that will be mitt romney of utah, guys so we do expect the president to be acquitted of the charges, but certainly there will be one vote that will be crossing over and breaking ranks with his party. back over to you. >> thank you so much for that.

we will continue to monitor the votes and will of course come back to you for all of the important updates. but let's get back to the market, which was record levels of closing for the s&p and the nasdaq joining us to talk about it, liz young, director at investor management and josh brown. the pace with which the s&p 500 back in record territory, pretty impressive. >> yeah, and in fact i think surprising and probably represents the path of maximum frustration. even if you thought the pullback 3.5% from the highs was somewhat justified to relieve some of the pressures of a stretched market and the coronavirus scare came along as a means to get that done, i don't think you would have said a round trip would happen in three weeks or so. it reads right now a little bit like the early october pullback of a similar magnitude even there it took just about a month to get back to all-time highs. so i do think you could argue

it's a little bit hasty, a little bit jumpy what's interesting is that stocks are not trading well off their own earnings reports even when they're good. so it's kind of a funny push-pull. so i would say you probably want to see the market settle into more of a rotational kind of grind and digestion, because that's probably going to lead to a greater access. >> liz, is that how you see it it's incredible to see the major averages all poised right now for gains of more than 3% for the week the coronavirus concerns continue we're still getting more headlines and more cases and yet markets are sustaining and moving past that right now >> i think it's a little surprising and i would be surprised even more if this was the end of the pullback, if this was really it. i like an up market as much as anybody else does, but i don't want to see it happen for really no explainable reason and i still think that economists are underestimating the impact that

this is going to have on china's economy. i think when the early estimates came out there was an overestimate of how much it was going to impact the global economy but still an underestimate of what was going to happen to china there's 60 million quarantined that aren't working. there's going to be lagging effects we're going to see later on. >> josh, are you surprised not to have seen yields pick up and recover in the same way back to all-time highs >> so for the last few years the bond market has been like giving side eyes at the stock market. every sometime the stock market starts to get excited about industrial production is good and maybe europe will recover this year, the bond market goes, okay, good luck with that. so this is more of the same. i do think it's an interesting dynamic if this keeps global central banks focused on wuhan and coronavirus, versus any inclination of lifting rates at any point this year. and on balance if that's what ends up happening, the effects

are stocks go higher so it almost works in stocks' favor for there to be a mini panic off in the distance provided it doesn't get materially worse. >> qualcomm has the first earnings report. >> a beat on qualcomm's bottom line, 99 cents adjusted versus the estimate of 85 cents the company says we begin to realize the benefits from the ramp-up of 5g. revenue beating consensus at 5.06 billion in terms of guidance, the second quarter between 80 to 95 cents, versus the consensus of 86 cents. and the release says guidance for the second quarter fiscal 2020 includes an estimate of the potential impact of the recent outbreak around the coronavirus. however, the actual impact may differ materially. you're seeing the stock up still by 1.6% here in extended trade but certainly a lot of companies still trying to assess the exact

financial impact of the coronavirus. back to you. >> certainly a theme we've seen emerging this earning season thank you. mike, i want to get your initial take on these numbers. qualcomm is being seen as a meaningful 5g play with some of the smart phones coming out. i think expectations were high when you saw the sigh works numbers ahead of this. >> the stock was a few bucks off its highs so we're adding back a little bit $96 is the all-time high it's a pretty significant beat on the bottom line it shows you that people are looking ahead to see what the actual run rate is 5g, probably for the stock market all it has to be is kind of a hype cycle and buzz phrase. but for a company like qualcomm it has to start coming through the numbers in a very short amount of time. >> liz, what do you think about the chip stocks at the moment? >> i think they're still something to watch and just technology overall, earnings have been healthy and that's a good thing we talk a lot about technology has done so well for so long, is it frorgty

if the fundamentals are coming in healthy, technology has plenty of room to go so i'm still optimistic. >> qualcomm was $90 a share 21 years ago so it's been around the same price most of my adult life and today it already looks like they're fading the results. so i wouldn't extrapolate too much out of this. >> we've got more earnings to get to zinga is out and josh has the numbers. >> that's right, so there's a key profit metric for zinga is adjust adjusted eebt da they beat expectations of $419 million. the q1 guidance is lighter than expected calling for an adjusted ebita of $72 million. bookings also lighter, $400 million and analysts had been looking for $412 million

for the full year, better than expectations, calling for $350 to 1.75 billion in bookings. i did have a chance to speak with the ceo we talked with the q1 guidance and what trends and themes he's seeing he tells cnbc that q1 is lighter because of unique advertising deals that happened in q4. in his words, zynga overperformed in ad deals, but he's suggesting more business will be happening for the company looking ahead in q2, q3 and q4 the year outlook looks good compared to expectations i asked him about the rollout of 5g, what is that going to mean for his company. and just a broader mobile games industry he says 5g will be a real tailwind for growth with faster downloads, lower latency, meaning the lag time 5g will lead to higher performance. he says investors can expect 5g to tb a profound growth driver

for the overall category back to you. >> thanks for that one up about 2% after hours. pelaton, we have the numbers. >> it's a solid beat for pelaton in its final quarter the streaming fitness company reported revenue of $466 million, up 77% annually and a net loss of 20 cents a share the street was looking for a loss of 36 cents the revenue was driven by a robust holiday sales period and it drove higher sales on the website as well as in showrooms and did not have a meaningful impact on pelaton's return rate. apparently the controversial commercial with the wife didn't hurt so much the stock bounced back following the 22% drop in december subscribers grew to 712,000 and subscription jumped 7% annually. the company lowered the price of its didn'tle only subscription to $12.99 a month and ended up

with over 109,000 subscribers. user engagement worked to 13 workouts a month per person from under ten a year ago it added amazon fire tv and apple apps at the end of the year it expanded its audience dramatically so a nice beat for pelaton back to you guys. >> stock is down 12% >> hovering right around the ipo price in the after-hours trade just below it, which was $29 mike, i want to get your thoughts on this >> it's hard to see exactly what in the numbers is causing the sell-off except the fact it's up 15% since the start of the year and it had been on a pretty good run. so aside from that, it being a $9 billion without a path to earning any money it's tough to see what the reaction is. >> for about the same price per share you can buy wendy's which

speaks to the american consumer. the pelaton thing will fade. >> you go eat your wendy's and then get on the bike. >> it's in no man's land you look at wen. you tell me two years from now what are people more likely to be consistently spending money on i'm sorry, i just know i've seen this i know >> shout out to tell latpelaton. you tried. >> liz, i want to get your thoughts on the 2019 class of ipos it's been a mixed picture. we've seen some of the names come back in recent weeks. pelaton until the numbers came out and the stock started moving lower in after hours, how does this play out for the class of 2020 as we're looking at names like casper going potentially public >> what happened in 2019 is a lot of the things that went poorly are what made the news. there were some good ones that

flew under the radar so in 2020 maybe we see more that flies under the radar i don't want to see so many companies coming out in the mid cap space because it ruins the opportunity in the small cap space. i like to see ipos coming out in small caps some of this price discovery of the smaller company is just how it works i think eve gotten unaccustomed to seeing that in the market. >> we've got more earnings to bring to you let's get to julia bore sten for those. >> earnings and revenues both missing estimates earning coming in at $1.05 per share versus estimates of $1.14 revenues of $1.22 million versus $1.33 billion. you see shares flat in after-hours trading. it is worth noting that the stock did decline during the trading day today on results the shares did decline on the lower than expected results.

and while iac has agreed to spin off match entirely, it does still own a significant portion of match as of now looking at the different divisions, home services revenue coming a hair lighter than expected the dot dash division better than expected, and just to speak to the fact that they are completing the match spinoff, the ceo saying that they will look for more acquisition opportunities and will take opportunities whenever they find them smaller assets in the private markets and larger opportunities in the bigger markets. back over to you >> something we're definitely going to ask him about when he joins us here on the "closing bell," the ceo of iac. thanks for bringing us those numbers. thank you liz young and josh brown for joining us and running through the headlines. we're going to send it out to sara who has the exclusive interview with john donohoe, the new ceo of nike. >> i am here at nike's new york headquarters where they are unveiling all of the new olympic

uniforms and have a big innovation event and joining me is john donohoe. the brand new ceo of nike. so great to see you and congratulations on the job. >> thank you, thrilled to be here with you. >> so this is your coming out party. what do you have to tell investors about yourself and the way you're going to run this company? >> well, i'll tell you, it's been one month in and it's been spectacular. two things really stand out from the first month. i was just saying to you i spent my first week at nike in china and japan getting a chance to see firsthand the incredible connection nike has with consumers. not just here in the but all over the world chinese consumers, japanese consumers, deeply connect with nike's product and with the brand and what it stands for and then the second thing that stands out and coming from tech you know how much i love innovation, nike's commitment to innovation is unlike anything i've seen in my career i've spent full days with our

design teams and innovation teams and product teams and the breadth and depth and commitment to innovation is simply spectacular. i'm having the time of my life. >> a lot of that is on display today. we're getting a look at the new uniforms what do you want investors to take away from what we're seeing >> well, it's really this innovation that's going to be profiled at the olympics that demonstrates too things that i think distinguish nike one is investing in innovation that delivers improved performance for athletes and the vapor fly next percent platform does just that. you all know that's the -- >> that's the controversial one. >> that's the shoe that broke the two-hour mark in the marathon >> is the criticism around that unfair that it adds 4% and almost gives a mechanical advantage to runners >> it's not a mechanical

advantage. it's simply using the same materials that go into a shoe and putting them together in an innovative way that allows the athlete to do their very best in a safe way >> and the other thing is sustainability >> that's the second part. and climate change is impacting sport. in fact, tokyo is likely to be the warmest olympics on record and so our athletes care about this topic and so nike is investing heavily in sustain ability. and you're going to see some incredible product released tonight, unveiled tonight. so for instance, all the olympic u.s. athletes that will be on the medal stand will be wearing a nike jacket and nike pants that are made of 100% recycled materials. and so nike, as i think you know, is the largest recycler of polyester in the world, over a billion plastic bottles are recycled each year into nba jerseys or the jerseys that the u.s. women's soccer team wore last year in the world cup so the investment and commitment to innovating in a sustainable

way is something that matters to our athletes and to nike. >> and it matters to consumers i'm wondering how you see consumer habits changing as a result of sustainability >> the consumer increasingly cares about sustainability so they're looking to companies like nike to lead in this dimension. and therefore we're stepping in with significant investment, the space shoe that you're describing is the most sustainable shoe that's been created and it's simply the first of what's going to be a series of significant investments and building sustainable product for our consumers and for our globe. >> so you talked about how you spent your first days at ceo in china right around the time that the coronavirus really started to hit yesterday you said that it would have a material impact on results. can you give us a little more specifics as to what you're seeing on the ground there and how it's going to impact business >> sure.

obviously this is a serious global health issue and our thoughts go out to everyone that's being affected. and our first priority as a company is unequivocally to tend to the safety and health of our teammates in china, the employees of our partners and to consumers. now, consistent with what's going on right now, roughly half of our stores in china, both our nike-owned stores and partner stores, are temporarily closed and those that are open are operating under reduced hours. and so there's lower traffic and that's why we announced yesterday there will be a reduction in our china results this quarter but what i will tell you from my time there only three weeks ago is the chinese consumer has a deep connection with nike and a deep connection with our innovation so we remain very confident around china as an important opportunity to market in the medium to long-term and we're hopeful that the situation there resolves itself over the coming

weeks and we'll stay close. >> so no reason to think that the brand has suffered at all or is not as healthy as it was producing double digit growth? >> not at all. the consumer, i got to see this firsthand, the consumer's connection with nike and the retail distribution in china through our own nike-owned stores, i was in our house of innovation in shanghai and then we have over-4,000 model brand partner stores in china which are some of the most and most powerful displays of nike and jordan product that i've seen. >> what about the supply chain i know nike has 11 contracted factories, hundreds of thousands of workers and 20% of footwear still made there how much is that being affected? >> not significantly yet but we're keeping a close eye on it we have a global supply chain and so we're just looking to see how we can balance that supply chain with the various demand factors around the world so it's something we're monitoring and if anything comes up significantly we'll certainly communicate that like we did

yesterday. >> u.s.-china phase one trade deal, how does that impact nike's business where it's such a critical market for you and, as you say, supply area? >> nike, simply put, is for free and fair trade and we believe that protectionism ultimately harms retail and harms consumers. what i think most people don't understand is that nike has been operating under duties for a long time. so that is built into our business model this is not a new topic. nike has been paying significant duties for years so it's simply a matter of degree we're focusing on what we can control. >> is there anything you would like to see as a company that does a lot of business there in the phase two trade deal >> i just think everything we can to promote global trade is good for our economy and ultimately it's good for our world. >> tariff free global trade. let move to north america. how do you see the competitive landscape right now? >> one of the real hallmarks of

nike is nike doesn't focus on other companies. it really doesn't. and i'll tell you, you hear that -- >> that's the same answer mark parker gave me. >> it's real i've seen it firsthand all the focus is how can we deliver better experiences to consumers and in a digital physical world that's evolving i've had a lot of people ask me you're a digital guy, what do you think. and i simply say i look at it through the eyes of the consumer and consumers don't think about -- when you shop it's not about i want to do it digitally or physically. we all want to get what we want, when we want it how we want it that's a blended physical and digit experience i was at our flag ship store in new york earlier this week and it's a highly immersive physical and digital experience some people are buying online and picking it up. others are buying in the store and having it shipped home we think there's enormous

opportunity in the world of directly connecting with our consumers and building a powerful brand physically and digitally in a blended way. >> the e-commerce business has exploded, i think 38% growth last quarter what are you going to bring with your experience at service now and ebay and the digital focus to that business beyond what it's already doing >> well, just what i said a minute ago i've said this several times in the first couple of weeks. we can't be using words like physical and digital that's not how the consumer thinks in many ways every company is a digital company these days we have the blessing of incredibly innovative products and the simple question is how do we allow consumers to get what they want when they want it how they want it whether it's digital or physical or any blend of the two. and the assets we have and the brand recognition we have, i think give us enormous opportunity to be one of the real leaders in doing that. >> what does it mean for the macy's of the world, macy's today announcing more store

closures and department stores suffering, a lot of the wholesale partners, foot locker, for instance, what do you tell them is the future of retail >> we're working with our partners to build modern, vibrant retail experiences and environments in addition to being in our nike-owned store here in new york, i was in a couple of the stores of our partners and there again, the way the product was displayed, the use of physical and digital. it had a vitality that was drawing consumers off the street, getting them to explore and ultimately getting them to buy. so i don't think it's a world where the retail is dead or digital or physical or e-commerce or retail i think consumers are looking for experiences that get them, as i say -- i'll say it one more time, what they want, when they want it and how they want it. >> innovation has been behind the success of nike, but also this trend of athleisure how do you feel about that word when people want to know if that's a fad or where we are in

that market, what do you tell them >> well, nike has got this focus on making sport an everyday habit. and i just love that because i think it speaks to where consumers are in this day and age where consumers all over the world want to be active. and the definition of a sport is expanding. it's not just on the basketball court or the soccer pitch or the tennis court it can be walking to work, it can be doing yoga in the morning. it can be doing a community run on a weekend people want to be active and so we're building both high performance product for elite and serious athletes as well as very comfortable and action oriented sportswear and the consumer is responding you see that people want to feel comfortable and they want to feel active so we're focusing on bringing the same innovations we're doing with elite athletes and make

them available to people like you and me, everyday athletes. >> i wanted to ask about kobe bryant it must have been very sad close partner for so many years, your first few weeks what was that like >> it was a gut-wrenching day and week he was a beloved member of the nike family. i had an experience when i was sitting on the board four years ago, three, four years ago when i had a conversation with kobe, i was fortunate to have a conversation with kobe and i had always known he was one of the world's greatest basketball players, but he had a depth and a level of clarity and depth and intelligence that was so striking and so inspiring so i know i felt when i heard the news, not only did we lose one of the great basketball players, but one of the great role model human beings in our society. so both i will miss him and

certainly everyone at nike misses him terribly. >> have you given any thought as to whether you're going to re-release his signature shoes >> we're working on how we respond. we're working on ways we can appropriately honor kobe and his family and also the others that were involved in that. nothing to announce yet. >> biggest change we're going to see from john donohoe? i know you're a former basketball player, mark parker was a runner slightly different backgrounds as i alluded to. what is the biggest change we're going to see under your leadership >> well, nike is a great company and great companies get different types of leaders phil knight was a remarkable founder. he had a business sense combined with emotional intelligence and incredible entrepreneur that built nike mark, one of the greatest shoe designers in history and also one of the most successful ceos over the last decade, did a phenomenal job and now my job is to build on

the strong foundation that they've created and help take nike into its next chapter in a more digital global world and i look forward to building on the incredible assets that are here and work with nike teammates all over the world to do just that. >> just in terms of the challenges that you think you're going to face, cultural issues have been certainly in the news. there's also news of an sec investigation. is there anything you can tell us about that? >> no, nothing i'm familiar with on the latter point or spend time on thus far and culturally niek hke has a sn culture. diversity and inclusion are core essentials to an innovative culture and that's something nike has been working on and focusing on. and it's something i care deeply about. you know that from my previous experiences and that's something i'll continue to make a priority. >> thank you very much. >> thank you >> good to talk to you that is the brand new ceo of nike, john donohoe has got to go across town for the big innovation event they're hosting

around the olympics. >> thank you so much for that and our thanks, of course, to nike's ceo we're going to switch focus ourselves. breaking news on the impeachment vote >> wilfred, the senate has voted to acquit the president on the first article of impeachment, abuse of power the vote was 52 not guilty, 48 guilty mitt romney was the only republican senator as we expected to break ranks and vote to convict the president he becomes the only senator in history to vote to convict a president of his own party over an article of impeachment. the senate is now voting on the second article of impeachment. we'll keep watching and keep you posted >> thank you for bringing us the latest up next, we'll dive more into the impeachment vote and what it means for the market plus, we are waingti earnings from yum china "closing bell" is back in 90 seconds, stay with us. we made usaa insurance for members like kate.

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our strategy is to have the best product at the lowest price. our fundamental businesses and revenue will always come from demand generation and growing our restaurant partners business in a letter to shareholder, grubhub highlighted its partner relationship with kfc where diners go to qfc.com but the orders are delivered by grubhub. shares of grubhub rising after the release. back over to you. >> frank, thanks so much for that up about 6% or so for grubhub. mike, of course, down from the highs of around $140 or so >> but interestingly, this brings it back to where it was before the last quarter's release when he made the comments and it fell into the low $30s so clearly a little bit of a regaining of composure from the street and from the company and i still think there's a lot of doubt hanging over this business. >> and certainly you're seeing reports in the last couple of weeks that maybe they were considering a sale and there might have been some names that were looking at the company. >> and his comments also were

seen as targeted at the private companies like door dash and trying to say, look, it's self-destructive to be more competitive in this industry. >> it's interesting that the share price, as you said, since the last quarter has recovered given a lot of the recovery was based on them being a target, which has not played out. >> true, it's not really the primarily driver. >> grubhub up 5% more breaking news on the impeachment vote. >> the senate has now voted to acquit president trump on the second article of impeachment, obstruction of congress. that vote tally was 53-47. republican senator rmitt romney of utah voted with his party in this case to find the president not guilty of obstruction of congress so it is official, the president has been acquitted on both charges, on both articles of impeachmen surly president trump will

declare this a victory either way, the bitter wounds of the past few months will run very deep here on capitol hill we saw it last night during the state of the union we're going to see it play out on the campaign trail over the next several months and ultimately this could influence the decision that voters make at the ballot box in november guys >> thank you so much for that. we're going to discuss this further. joining us, brian gardner of kbw and terry haines, advisory founder. good afternoon to you both brian, both sides are going to try to claim victory or certainly entrench themselves in the arguments they've been making for a long time but the fact is, the democrats have failed to remove him from office and will that help or hurt them when we get to election day >> i think it's going to hurt them because if you look at it within the context of everything that's going on right now, the economy is strong, the president's poll numbers are good and getting better, i think

the whole exercise has backfired on democrats so emotions are not going to be healed they're going to continue to simmer and it's going to be tense in washington for a while. but look at who has momentum the president has momentum and the democrats are back on their heels. they had a bad week in iowa. the political environment is going against them right now and this just feeds into it. >> terry, it's been a busy week in terms of politics and all of the goings on. now that impeachment is actually out of the way within congress, though, and especially in light of the state of the union address we got from president trump last night, the fact that he pointed to certain legislation he would like to see move forward, what is this going to look like in terms of law making and some of the areas, especially for investors to be focused on now through the rest of the year? >> first thing is investors need to understand that the legislative environment is

always a lot more active than most people think it is. the old standard discussion about it being gridlock really isn't true when the parties come together on things they come together on spending, lots of different fiscal issues. i think that there are four events to watch here first i think you watch in washington you watch the aftermath of the chinese phase one deal i always thought it was negative because enforcement would be choppy and now you have the coronavirus on top of it and that makes it more difficult secondly i think what you've got is a new push on drug pricing. i've always been of the view that drug pricing was likely to happen this year it's a very bipartisan initiative trump gave it a big push in the state of the union last night. so i think you have that and a lot of people in the markets want to see infrastructure legislation i don't think you get that so that's a market negative.

but i would really look out for a us/uk calendar year 2020 agreement, which i think is not priced in by the markets that both the u.s. and uk want to do that for a variety of reasons. >> that would be swift work if they delivered that in that spice of time. brian, what is your main take-away from iowa? >> well, iowa has its own quirks so it's tough to read through for the rest of the country. i think the democratic party is split. i said going into iowa that the race was open. i still think it's open. i guess the main take-away is that joe biden is in worse shape going in than i thought he was and that bernie sanders has a more clear path to the nomination than i would have thought before iowa. so i think democrats, they still have time to correct the ship

and pick a candidate that is going to give them the better chance against president trump, but they're not in a good place right now. and i think if you come out of new hampshire with another sanders win and if he wins in nevada after that, it's going to be tough for the democratic party to stop him. >> all of these topics i suspect are going to be talking about a lot more as the months unfold. thanks for joining us. >> thanks, morgan. still ahead, casper is expected to price it's ipo any minute mou after cutting its range yeery.stda we have a preview straight ahead. nomou after cutting its range yesterday. we have a preview straight ahead. wmou after cutting its range yesterday. we have a preview straight ahead. after cutting its range yesterday. we have a preview straight ahead. at fidelity, online u.s. stocks and etfs are commission-free.

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welcome back casper is set to price it's ipo after cutting its expected range earlier today. bob pisani has a preview. >> casper got a haircut. it's a cut of the expected price range from 8.4 million, it was cut to $12, to $13 the days of growth are essentially over we saw that last year. investors are pushing back against money losing companies another problem, direct-to-consumer firms are spending a lot of money to get market share and the costs of acquiring new customers are rising finally, there's competition from well-known old school firms like tempersealy and lesser known direct-to-consumer like purple innovations and you can't blame it on a poor

ipo market the renaissance hit another historic high and former laggards have one well in 2020 we should get indications in the next hour or hour and a half or so. >> thank you we've got an earnings alert on yum china. let get over to kate rodgers. >> yum china reporting pretty strong q4. eps coming in at 25 cents adjusted that is a beat compared to estimates at 19 cents. revenues, $2.03 billion. also a beat up 2%, including a 3% gain at kfc pizza hut same-store sales were flat for coronavirus color here, the company says it's closed more than 30% of its restaurants right new in china it has about 9,200 stores total. it also said in-store sales were down during the chinese new year

and the company says that as a result of the outbreak yum china might experience operating losses for the first quarter of 2020 and if the sales trend continues for the full year 2020 so kind of warning that this obviously will impact the business the stock had been down as much as 3%. the conference call isn't until later tonight. i'm sure there will be much more on coronavirus back over to you. >> thank you shares are down 2% after hours we can talk about a name like nike and what potential losses in china, given coronavirus, co look like and basically the recouping that can happen. when you're talking about fast food it's a different story. >> the absolute sum total of the business is affect the stock was down, so clearly the market has taken some of that business out of the stock but now i do think you're going to see these companies try to quantify things and you're going to get the test of whether it was already in the numbers >> one to watch. it's been a wild ride after

hours, given the earning session and all the names we've had. we're going to dive into the biggest movers ahead. >> and we'll speak with iac ceo. 'lhe from him before tomorrow's earnings call or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. saving for ava's college. being able to retire on our terms. taking care of dad. why ameriprise financial? my advisor cares about my personal goals. he gives us comprehensive advice. i feel prepared for what's expected in life and even what's not.

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welcome back, we've got another earnings alert, julia boorstin has got the results >> fox shares moving higher in after hours trading after beating results of the top and bottom line. adjusted earnings of 10 cents versus estimates for a 2 cent loss per share revenues also beat estimates coming in at $3.7 billion. you see shares now trading up about 3.5% in after hours. the ceo says they look forward to continuing the momentum after a successful super bowl and with the buildup to the presidential election back to you. >> we have breaking news on bernie madoff now. >> morgan, the man convicted of the greatest ponzi scheme in american history is asking the court to let him out of prison early so that he can die outside prison walls

he petitions the court saying he has end stages of kidney disease, that he needs a wheelchair and round-the-clock help he's been moved to a palliative care center at the north carolina prison where he is. in his petition to the court he says madoff does not dispute the severity of his crimes, nor does he seek to minimize the suffering of its victims now after ten years of incarceration, he's humably asking this court for a mode couple of compassion we'll let you know how that goes. >> thank you for bringing us that iac reporting results just moments ago. up next, we're going to hear from that company's ceo with a full bakwn oredof the numbers and a look inside the match spinoff. e future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo well planned, well invested, well protected. voya. be confident to and through retirement.

robinwithout the commission fees. so, you can start investing today wherever you are - even hanging with your dog. so, what are you waiting for? download now and get your first stock on us. robinhood. . welcome back to kploebl. iac falling after hours. down 2% after a miss on earnings and revenue expectations moments ago. joining us on the phone to dig into the numbers and first on cnbc interview is the ceo joey levin. thanks for being with us today a lot of focus right now from investors a you a move forward with the spinoff of match on what the company is targeting next any sort of insight or color you can give us in terms of what would look attractive as the portfolio shifts >> well, it's not a big reveal but we -- actually i was on cnbc about a month ago.

and we're had you hopefully closing the acquisition. care.com is a big one for us we are buying the company for about $500 million, getting into a big, new category, probably a $30 oh billion-dollar category and a wide range of the population both people interested in senior care as a population ages. people interested in child care as there is more and more households with two working parents and a need for that. corporations to make sure they can keep all the people in the workforce, offering solutions for employees. it's a pretty interesting area it's a big marketplace we love consumer marketplaces and brands like that, big leader we are excited about that opportunity. >> what's your take, joey, in terms of the importance of companies to be profitable when you are spinning them out? and has your view on that altered given the past year

where we have seen the huge focus on the balance between top line and bottom line profitability? >> look, we always focus on cash flow long-term but that doesn't mean it needs to be cash flow today, whether that's a company we consider spinning, whether a company we are considering acquiring. it just means you need a very clear path you can understand where a cash flow profitability comes from when we are forever owners of assets that's the way we think about it we don't think about we can disrupt a market and get somebody else to bail us out or we can sell the business or whatever we think about that business has to generate cash flow. and so anything we are doing we are very clearly working towards that path from the earliest stages it doesn't mean we're profitable at every stage but means we are working towards that and that matters in things we buy or things we spin or across the board for us. >> joey, your stock has traded

to some degree with match for a while. that will end as you complete the spinoff. but given the fact that that company had the pullback on disappointing results, is there anything fundamentally you think changing in the market, in the online dating app market that investors should know about. >> no, absolutely not. i think match is in a fantastic place, an amazing market it has global -- in terms of people adapting dating products in more countries and markets and cultures, the relevance of dating products, you can see, extending kind of very broadly and universally. we love this i don't know if you saw this dolly parton meme that went all other instagram and facebook, social media recently. but the concept of dating and tinder, people online is something that just has i think enormous runway. and i'm not really focused on a couple of dollars of revenue in

any particular quarter >> joey, thanks for joining us we appreciate it. >> thank you coming up next, the key thing every investor needs to watch as we head to a new trading day. >> and tonight, tune in to cnbc's special report, outbreak: coronavirus, live at 7:00 p.m. eastern. >> plus don't miss the exclusive interview with duncan brands ceo, tomorrow at 3:00 p.m. "closing bell" will be right back but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares. powered by over a century of investment expertise before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

here a look at where we closed the day on wall street as the rebound continues. the dow finishing up 483 points orp .7 today we saw record closes for both s&p 500 and the nasdaq >> it's been a very busy after hours earnings session equal come shares higher after better than expected earnings. iac falling after missing top and bottom line. yummy china beating. but warning the coronavirus hurts 2020 results peloton plunging despite a smaller than expected loss the standout decliner about 11%

qualcomm up a couple of%. >> knows are the earnings today. more on tap tomorrow here are some of the big names we hear from toyota, kellogg, yummy brands, duncan, uber pinterest and wynn, mike as we head to another trading day. especially with the 1% gains in the major averages what are you watching. >> the s&p a round trip from less than three weeks ago with the record high. 10-year treasury from 183 to 165. investment grade bonds to 3.1. the market in the same spot. yields lower therefore it seems as if you have better valuation. that to me explains some of the comeback but the responses to earnings have not been all great. we just heard some of those even as earnings forecasts curl up a bit. i think there is sort of push pull in the market and see we are hayesy in getting back all the losses from the pullback.

>> and important to watch overseas because the last couple days we've been greeted with global bouncebacks. >> whuten, overseas, the past three sessions as a matter of fact. >> finishing with record closes though today with the s&p and the nasdaq we're out of time here that does it for the "closing bell." >> "fast money" begins right now. indeed it does and live from the nasdaq market site overlooking times square. i'm tyler mathen for melissa pleep tonight steve grasso karen finerman, dan nathan guy adami. tonight the tesla bull kathy wood with us why she says it to be headed to $15,000 a share. there you see it today at 734 plus all over tonight's big after hour hovers. peloton, qualcomm. yummy china all on the radar after reporting results earlier today. and